MEXICO CITY, July 28, 2021 /PRNewswire/ -- Banco Santander
México, S.A., Institución de Banca Múltiple, Grupo Financiero
Santander México (NYSE: BSMX; BMV: BSMX), ("Banco Santander
México" or "the Bank"), today announced financial results for the
three-month and six-month periods ending June 30th, 2021.
Banco Santander México reported net income of Ps.4,713 million
in 2Q21, representing increases of 11.4% YoY and 43.7% QoQ. On a
cumulative basis, net income for the first half of the year,
reached Ps.7,992 million, representing a 17.1% YoY decrease.
HIGHLIGHTS
|
|
|
|
|
|
|
|
|
|
|
|
|
Results (Million
pesos)
|
|
2Q21
|
1Q21
|
2Q20
|
|
%QoQ
|
%YoY
|
|
6M21
|
6M20
|
|
%YoY
|
Net interest
income
|
|
15,770
|
15,585
|
15,931
|
|
1.2
|
(1.0)
|
|
31,355
|
32,827
|
|
(4.5)
|
Fee and commission,
net
|
|
4,873
|
4,902
|
4,598
|
|
(0.6)
|
6.0
|
|
9,775
|
9,295
|
|
5.2
|
Core
revenues
|
|
20,643
|
20,487
|
20,529
|
|
0.8
|
0.6
|
|
41,130
|
42,122
|
|
(2.4)
|
Provisions for loan
losses
|
|
5,068
|
7,075
|
8,350
|
|
(28.4)
|
(39.3)
|
|
12,143
|
13,515
|
|
(10.2)
|
Administrative and
promotional expenses
|
|
9,955
|
9,894
|
9,599
|
|
0.6
|
3.7
|
|
19,849
|
19,384
|
|
2.4
|
Net income
|
|
4,713
|
3,279
|
4,230
|
|
43.7
|
11.4
|
|
7,992
|
9,644
|
|
(17.1)
|
Net income per
share1
|
|
0.70
|
0.48
|
0.62
|
|
43.7
|
11.4
|
|
1.18
|
1.42
|
|
(17.1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance Sheet Data
(Million pesos)
|
|
Jun-21
|
Mar-21
|
Jun-20
|
|
%QoQ
|
%YoY
|
|
Jun-21
|
Jun-20
|
|
%YoY
|
Total
assets
|
|
1,634,384
|
1,748,298
|
1,929,350
|
|
(6.5)
|
(15.3)
|
|
1,634,384
|
1,929,350
|
|
(15.3)
|
Total
loans
|
|
710,323
|
713,989
|
751,219
|
|
(0.5)
|
(5.4)
|
|
710,323
|
751,219
|
|
(5.4)
|
Deposits
|
|
766,663
|
767,627
|
789,740
|
|
(0.1)
|
(2.9)
|
|
766,663
|
789,740
|
|
(2.9)
|
Shareholders´
equity
|
|
159,941
|
159,654
|
146,536
|
|
0.2
|
9.1
|
|
159,941
|
146,536
|
|
9.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Key Ratios
(%)
|
|
2Q21
|
1Q21
|
2Q20
|
|
bps
QoQ
|
bps
YoY
|
|
6M21
|
6M20
|
|
bps
YoY
|
Net interest
margin
|
|
4.52
|
4.42
|
4.48
|
|
10
|
4
|
|
4.47
|
4.93
|
|
(46)
|
Net loans to deposits
ratio
|
|
89.50
|
89.76
|
91.81
|
|
(26)
|
(231)
|
|
89.50
|
91.81
|
|
(231)
|
ROAE
|
|
11.83
|
8.24
|
11.86
|
|
359
|
(3)
|
|
10.03
|
13.52
|
|
(349)
|
ROAA
|
|
1.08
|
0.73
|
1.01
|
|
35
|
7
|
|
0.92
|
1.15
|
|
(23)
|
Efficiency
ratio
|
|
47.59
|
46.62
|
40.71
|
|
97
|
688
|
|
47.10
|
42.28
|
|
482
|
Capital
ratio
|
|
18.91
|
19.73
|
16.69
|
|
(82)
|
222
|
|
18.91
|
16.69
|
|
222
|
NPLs ratio
|
|
2.87
|
2.91
|
2.51
|
|
(4)
|
36
|
|
2.87
|
2.51
|
|
36
|
Cost of
Risk
|
|
2.75
|
3.15
|
3.14
|
|
(40)
|
(39)
|
|
2.75
|
3.14
|
|
(39)
|
Coverage
ratio
|
|
118.39
|
120.12
|
138.81
|
|
(173)
|
—
|
|
118.39
|
138.81
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Data
|
|
Jun-21
|
Mar-21
|
Jun-20
|
|
%QoQ
|
%YoY
|
|
Jun-21
|
Jun-20
|
|
%YoY
|
Branches
|
|
1,039
|
1,007
|
1,050
|
|
3.2
|
(1.0)
|
|
1,039
|
1,050
|
|
(1.0)
|
Branches and
offices2
|
|
1,352
|
1,352
|
1,406
|
|
0.0
|
(3.8)
|
|
1,352
|
1,406
|
|
(3.8)
|
ATMs
|
|
9,534
|
9,497
|
9,142
|
|
0.4
|
4.3
|
|
9,534
|
9,142
|
|
4.3
|
Customers
|
|
19,257,998
|
19,068,219
|
18,641,282
|
|
1.0
|
3.3
|
|
19,257,998
|
18,641,282
|
|
3.3
|
Employees
|
|
23,512
|
22,280
|
20,007
|
|
5.5
|
17.5
|
|
23,512
|
20,007
|
|
17.5
|
|
|
1)
|
Accumulated EPS, net
of treasury shares (compensation plan) and discontinued operations.
Calculated by using weighted number of shares.
|
2)
|
Includes cash desks
(espacios select, box select and corner select) and SMEs business
centers. Excluding brokerage house offices.
|
Héctor Grisi, Banco Santander México's Executive President
and CEO, commented: "This quarter's bottom line
exceeded 2Q20's level by 11% and was 44% higher than in the
previous quarter. Although the wide ranging impact of the pandemic
continues to affect the comparability of our results, this quarter
we delivered a solid performance across the main line items of our
P&L: NII and commissions were slightly higher than last year's
levels, we maintained tight control of expenses, and cost of risk
converged to pre-pandemic levels. Together, this resulted in an ROE
of 11.83%, very similar to the second quarter of 2020 and it was
achieved despite the excess capital we had accumulated due to the
regulatory restriction imposed on dividend payments.
In terms of individual loans, we continue to deliver the best
performance among Mexican banks, with growth close to 10% and with
market share gains in both mortgage and auto loans. Additionally,
it appears we have reached an inflection point in credit cards, as
balances have started to show modest growth. In commercial loans,
we still reported a relevant contraction of 14%. Practically 60% of
this contraction is explained by the reduction in loans to large
corporates, with borrowings growing strongly last year when
businesses drew down their committed lines of credit as a
precautionary measure. By contrast, middle market loans grew
compared to previous quarters, and in SMEs we expect to see a
better performance in the second half of the year since the entire
portfolio is not bound by the support program and we now have a
greater risk appetite.
Deposits contracted by almost 3%, but with differentiated
behavior. We expanded Demand deposits by 8%, while Term deposits
decreased 23%. This market dynamic resulted from the significant
reduction in interest rates. It is noteworthy that both Demand and
Term deposits from individuals performed better than corporates.
The former is in line with our strategy to continue attracting and
building scale among individuals.
We continue to benefit from the boost that the pandemic has
given banking digitalization. Digital customers grew 11% over the
year, with digital transactions now representing 41% of our total
transactions, up from 30% a year ago. Although the pandemic and the
economic environment are still challenging us, we are making
additional headway with our strategy, by continuing to execute with
focus and discipline and by keeping intact our ambition to offer
the best customer banking experience in Mexico. To that end, we continue to work on
strengthening customer loyalty, seeking to consistently improve the
quality of service and increase customer satisfaction levels.
Further, we have certain plans and launches scheduled for the
second half of the year that will take advantage of new digital
tools and processes with which we continue to build a stronger
franchise and seize the many growth opportunities ahead of us."
2Q21 Earnings Call Dial-In Information
Date:
|
Thursday, July,
29th, 2021
|
Time:
|
10:00 a.m. (MCT);
11:00 a.m. (US ET)
|
Dial-in
Numbers:
|
1-855-327-6837 US
& Canada 1-631-891-4304 International & Mexico
|
Access
Code:
|
Please ask for
Santander México Earnings Call
|
Webcast:
|
http://public.viavid.com/index.php?id=145735
|
Replay:
|
Starting: Thursday,
July 29th, 2021 at 2:00 p.m. (US ET)
|
|
Ending: Thursday,
August 5th, 2021 at 11:59 p.m. (US ET)
|
|
ET Dial-in number:
1-844-512-2921 US & Canada; 1-412-317-6671 International &
Mexico Access Code: 10015639
|
ABOUT BANCO SANTANDER MÉXICO (NYSE: BSMX; BMV: BSMX)
Banco Santander México, S.A., Institución de Banca Múltiple,
Grupo Financiero Santander México (Banco Santander México), one of
Mexico's leading banking
institutions, provides a wide range of financial and related
services, including retail and commercial banking, financial
advisory and other related investment activities. Banco Santander
México offers a multichannel financial services platform focused on
mid- to high-income individuals and small- to medium-sized
enterprises, while also providing integrated financial services to
larger multinational companies in Mexico. As of June
30th, 2021, Banco Santander México had total
assets of Ps.1,634 billion under Mexican Banking GAAP and more
than 19.2 million customers. Headquartered in Mexico City, the Company operates 1,352
branches and offices nationwide and has a total of 23,512
employees.
INVESTOR RELATIONS CONTACT
Héctor Chávez Lopez –
Managing Director - IRO
+ 52 (55) 5269-1925
hchavez@santander.com.mx
Investor Relations Team
investor@santander.com.mx
www.santander.com.mx
LEGAL DISCLAIMER
Banco Santander México cautions that
this presentation may contain forward-looking statements within the
meaning of the U.S. Private Securities Litigation Reform Act of
1995. These forward-looking statements could be found in various
places throughout this presentation and include, without
limitation, statements regarding our intent, belief, targets or
current expectations in connection with: asset growth and sources
of funding; growth of our fee-based business; expansion of our
distribution network; financing plans; competition; impact of
regulation and the interpretation thereof; action to modify or
revoke our banking license; exposure to market risks including
interest rate risk, foreign exchange risk and equity price risk;
exposure to credit risks including credit default risk and
settlement risk; projected capital expenditures; capitalization
requirements and level of reserves; investment in our information
technology platform; liquidity; trends affecting the economy
generally; and trends affecting our financial condition and our
results of operations. While these forward-looking statements
represent our judgment and future expectations concerning the
development of our business, many important factors could cause
actual results to differ substantially from those anticipated in
forward-looking statements. These factors include, among other
things: changes in capital markets in general that may affect
policies or attitudes towards lending to Mexico or Mexican companies; changes in
economic conditions, in Mexico in
particular, in the United States
or globally; the monetary, foreign exchange and interest rate
policies of the Mexican Central Bank (Banco de México); inflation;
deflation; unemployment; unanticipated turbulence in interest
rates; movements in foreign exchange rates; movements in equity
prices or other rates or prices; changes in Mexican and foreign
policies, legislation and regulations; changes in requirements to
make contributions to, for the receipt of support from programs
organized by or requiring deposits to be made or assessments
observed or imposed by, the Mexican government; changes in taxes
and tax laws; competition, changes in competition and pricing
environments; our inability to hedge certain risks economically;
economic conditions that affect consumer spending and the ability
of customers to comply with obligations; the adequacy of allowance
for impairment losses and other losses; increased default by
borrowers; our inability to successfully and effectively integrate
acquisitions or to evaluate risks arising from asset acquisitions;
technological changes; changes in consumer spending and saving
habits; increased costs; unanticipated increases in financing and
other costs or the inability to obtain additional debt or equity
financing on attractive terms; changes in, or failure to comply
with, banking regulations or their interpretation; and certain
other risk factors included in our annual report on Form 20-F. The
risk factors and other key factors that we have indicated in our
past and future filings and reports, including those with the U.S.
Securities and Exchange Commission, could adversely affect our
business and financial performance. The words "believe," "may,"
"will," "aim," "estimate," "continue," "anticipate," "intend,"
"expect," "forecast" and similar words are intended to identify
forward-looking statements. You should not place undue reliance on
such statements, which speak only as of the date they were made. We
undertake no obligation to update publicly or to revise any
forward-looking statements after we distribute this presentation
because of new information, future events or other factors. In
light of the risks and uncertainties described above, the future
events and circumstances discussed herein might not occur and are
not guarantees of future performance.
Note: The information contained in this presentation is not
audited. Nevertheless, the consolidated accounts are prepared on
the basis of the accounting principles and regulations prescribed
by the Mexican National Banking and Securities Commission (Comisión
Nacional Bancaria y de Valores) for credit institutions, as amended
(Mexican Banking GAAP). All figures presented are in millions of
Mexican pesos, unless otherwise indicated. Historical figures are
not adjusted by inflation.
View original
content:https://www.prnewswire.com/news-releases/banco-santander-mexico-reports-second-quarter-2021-net-income-of-ps4-713-million-301343754.html
SOURCE Banco Santander México, S.A.